Fractional Reserve Gold, Fractional Reserve Banking, Money Printing And Economic Decline Go Hand In Hand

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It is certain that Federal Reserve Chairman Helicopter Ben Bernanke was relieved last month when he testified before Congress and his longtime antagonist, Congressman Ron Paul, wasn’t present.

Bernanke’s statement that “… nobody really understands gold prices, and I don’t pretend to understand them either” went unchallenged. That would not have been the case had the now-retired Paul been present. It’s an astonishing admission from someone who claims to be steeped in economic history, wisdom and experience, as does Bernanke.

Gold prices have historically indicated the confidence in or the failure of fiat currencies. An ounce of gold can still be exchanged for the same items an ounce of gold could be exchanged for 100 years ago. That’s not the case of a dollar, which now is worth only pennies compared to what it was in 1913, or even 1971 when Richard Nixon completely disconnected the U.S. dollar from gold.

In 1936, you could buy a very nice suit for $34. At the time, gold was $34 per ounce. Today, you can buy an extremely nice suit for $1,350. An ounce of gold can be had for about $1,350.

Suppose someone had put $34 in a shoebox in 1936, set it on the top shelf of the closet and forgotten about it. If you found it today, it would still be $34, albeit $34 that will buy a lot less than $34 did in 1936. But suppose someone had put away for safekeeping an ounce of gold in 1936. If you pulled it out today, it would be worth $1,300 or more.

In 1933, the Consumer Price Index (CPI) — the price of a basket of common goods purchased by the average consumer — was 12.8. The current CPI is 233. In other words, that same basket of goods has increased from just less than $13 to $233.

The rise in gold’s price from $34 to $1,300 does not reflect an increase in the value of an ounce of gold. It reflects an increasing loss of confidence in the U.S. dollar and the devaluation of the dollar through money printing. Every dollar printed dilutes the value of those already in circulation. And Bernanke has been on a money printing binge for the past five years.

There is a great myth that the Federal government is in debt. Thanks to central banking and the Federal Reserve, all the government has to do to erase its so-called debt is to print more money. (This is not the case for local and State governments.)

Note from the Editor: As a reader you deserve to know the truth behind the economic disaster America faces. I’ve arranged for readers to get free copies of two books that reveal the sinister plot by the US Government to steal our wealth—a plot Merrill Jenkins, Sr. (the Original Monetary Realist) tried to expose at great risk. His books are hard to find, but these books include rare transcripts from his lectures. Click here for your free copies.

In a column he wrote in 1995, the late economist and author Murray N. Rothbard explained the Fed’s operation thusly:

I set up a Rothbard Bank, and invest $1,000 of cash (whether gold or government paper does not matter here). Then I “lend out” $10,000 to someone, either for consumer spending or to invest in his business. How can I “lend out” far more than I have? Ahh, that’s the magic of the “fraction” in the fractional reserve. I simply open up a checking account of $10,000 which I am happy to lend to Mr. Jones. Why does Jones borrow from me? Well, for one thing, I can charge a lower rate of interest than savers would. I don’t have to save up the money myself, but can simply counterfeit it out of thin air. (In the 19th century, I would have been able to issue bank notes, but the Federal Reserve now monopolizes note issues.) Since demand deposits at the Rothbard Bank function as equivalent to cash, the nation’s money supply has just, by magic, increased by $10,000. The inflationary, counterfeiting process is under way.

The Federal Reserve works this way, by “lending” money to other banks, through either a mark on a ledger sheet or by computer transfer. Real money never changes hand.

So when agents of the government talk about debt, they are talking about something that doesn’t actually exist.

Remember: Since the U.S. monetary system is no longer on the gold standard, Federal Reserve Notes (dollars) are no longer redeemable for gold, as they were prior to 1933. Now the government recognizes a slip of paper with a printed value on it as money. That slip of paper is backed by the “full faith and credit of the U.S. Government.” However, that government can simply print money whenever the supply runs short or the government decides to spend more on the pet projects of the elected class or to bail out their favored corporatist masters (as in the case of the stimulus packages of the past few years).

However, the process of printing additional money to cover the so-called debt causes inflation and a devaluation of the dollar. Consider that prior to 1933 an ounce of gold was equal to $20.67. Franklin D. Roosevelt’s New Deal set the price at $35 per ounce. Since President Richard Nixon separated the dollar from gold, the price has increased 47-fold.

In 1966, before he sold his soul to the banksters, former Fed Chairman Alan Greenspan wrote an essay titled “Gold and Economic Freedom.” In it, he said:

In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

All fiat systems in history have been in socialist states. All socialist states in history have a history of suppressing their own people. And all socialist fiat money states/countries transfer wealth and production to the state without payment.

Of course, as in America today, this transfer takes place via the depreciation of paper money. The owner of the money printing press controls all wealth and production.

All that we ever get from our paper money is the promise to pay. Thomas Jefferson warned of this when he said: “The trifling economy of paper, as a cheaper medium, or its convenience for transmission, weighs nothing in opposition to the advantages of the precious metals… it is liable to be abused, has been, is, and forever will be abused, in every country in which it is permitted.”

And President James A. Garfield said: “Whoever controls the volume of money in any country is absolute master of all industry and commerce.”

And now, you ask: “Since gold is way down from its high of $1,900, doesn’t that mean the economy is improving?” If you ask that question you are as economically ignorant as Bernanke.

The answer is no, because the banksters invented fractional reserve gold. In other words, they are selling paper gold that has no basis in reality. There are hundreds of thousands, if not millions, of ounces more gold represented by paper than has ever been mined in the history of the world.

Real gold is being purchased at a record pace. Yet because of the banksters’ manipulation and rigging of the market through the use of unbacked paper “gold,” the price took a precipitous dive in April. Paul Craig Roberts explained what happened to the gold price in great detail here and here.

As Michael Snyder of The Economic Collapse reminded readers in his column Thursday, the U.S. economy was at its best prior the creation of the Federal Reserve and the establishment of an income tax. Even Wikipedia notes this:

The Gilded Age saw the greatest period of economic growth in American history. After the short-lived panic of 1873, the economy recovered with the advent of hard money policies and industrialization. From 1869 to 1879, the US economy grew at a rate of 6.8% for real GDP and 4.5% for real GDP per capita, despite the panic of 1873.  The economy repeated this period of growth in the 1880s, in which the wealth of the nation grew at an annual rate of 3.8%, while the GDP was also doubled.

The economy functions best when on a hard money standard and absent central control of the money supply and burdensome taxation and redistribution. The Federal Reserve, ostensibly created to keep the economy stabile, has created financial booms and busts, impoverished savers, and destroyed the middle class.

Personal Liberty

Bob Livingston

founder of Personal Liberty Digest™, is an ultra-conservative American author and editor of The Bob Livingston Letter™, in circulation since 1969. Bob has devoted much of his life to research and the quest for truth on a variety of subjects. Bob specializes in health issues such as nutritional supplements and alternatives to drugs, as well as issues of privacy (both personal and financial), asset protection and the preservation of freedom.

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  • ridge runner

    The madrasses educated marxist said in his books, written with USA’s domestic murdering terrorist, just who he admired and what he was going to do to destroy America. All endorsed and approved by the Democrat Party pukes. This party has always support government control everything including how much you make, by giving every body the same amount, as The Welsey Hag spoke several times promoted, on taking every persons money and letting some degreed moron in a government created agency, deciding what you needed to live. Only a brain dead morons would vote for any democrat for anything. The more aborant to American values, the higher office in government these idoits are promoted and worshipped. The marxist mooslam, communist supporters like McGorvern, FDR and his registed communist Sec of Ag, all who believed USSR had the best way to produce food, government should control ll land, and in centerlized government. All facts. Wilson turned the Federal Reserve in to more government controlling crooks, all in bed together, IRS,Wall Street, Congress, the elietist SCOTUS, and of course the trial lawyers, all crimminal who break and create laws that they don’t abide by. ,

    • NC

      Ridge runner, when the Civil War ended this country was pretty much on it’s knees with just two major political parties as we have today. Today our position is much different! How and why did we get here with the leadership of the “ignert, socialist demoncrats” and the “too liberal” Republicans in Washington??? Name the true conservative leaders who have lead us to be the world leader> Was it all an accident since we haven’t had a true conservative leader?
      You rant but you never reason to explain how we got here ahead of ALL the other countries in the world with such “miserable” leadership!!!! Want to give that a try, true conservative??

      • S.C.Murf

        nc what you fail to see is the fact that satan has ruled this country for centuries now and he has taken it exactly where he wants it. he made it the strongest in the world to use it’s might for his purpose. You are still stuck in the dem/repub crap along with the conservative/lib stuff and where you need to be is the good/ evil that is really taking place. But sad evil people like you won’t see and don’t want to see because you are on the side of true evil. You enjoy.

        up the hill
        airborne

  • KG

    quote: All fiat systems in history have been in socialist states. All socialist states in history have a history of suppressing their own people. And all socialist fiat money states/countries transfer wealth and production to the state without payment.

    Rome had a ‘fiat’ currency in the form of cheap copper coins. And Rome was the economic powerhouse for centuries until conquest became more important than the economic well-being of it’s citizens. Sorta like what W and his co-conspirators did to America. Every time I get into a discussion about ‘fiat’ money, I always say “Well then, just GIVE me that ‘worthless’ money!” I have yet to receive a single dollar of that ‘worthless’ money.

    Just face it, Bob, you are full of it.

    • hippybiker

      Actually, the fall of Rome came after the Romans debased their currency by gilding cheap Iron coins. Much as the united States is doing. When was the last time you saw a real Silver coin, or a real Copper Penny, for that matter.

      • Vis Fac

        1964 was the last year that circulating U.S. coins were struck in 90% silver. The composition of U.S. coins changed over the past few decades. Because of a growing worldwide silver shortage, the Coinage Act of 1965 authorized a change in the composition of dimes, quarters, and half-dollars, which had been 90 percent silver. Silver was eliminated from the dime and the quarter. The half-dollar’s silver content was reduced to 40 percent and, after 1970, was eliminated altogether. This applies ONLY to coins minted for everyday use with the general public. The US Mint is still minting yearly sets of SILVER PROOF Coins that you can purchase.

        Not that anyone cares but the composition the US penny was pure copper from 1793 to 1837. From 1837 to 1857, the penny was made of bronze (95 percent copper, and five percent tin and zinc). From 1857, the penny was 88% copper and 12% nickel, that gave the coin a whitish appearance. The penny returned to being bronze (95% copper, and 5% percent tin and zinc) from 1864 to 1962. In 1943, the penny’s composition was changed to zinc-coated steel. This change was only for the year 1943 and was due to the critical use of copper for the war effort. A limited number of copper pennies were minted that year. In 1962, the penny 95% copper and 5% zinc. The alloy remained 95% copper and 5% zinc until 1982, when the
        composition was changed to 97.5 percent zinc and 2.5% copper (copper-plated zinc)
        I have several silver coins and two 5 gallon water bottles full of pennies stored for emergencies.
        Libertas inaestimabilis res est
        Semper-Fi

        • KG

          Try running “up the hill” with S C Murf carrying all of that! You wont have much room for Ammo. If you are packing you AR, it might not be so bad. But I’ve got a FAL and it shoots NATO rounds, so I cant carry many pennies with me.

          • S.C.Murf

            Chewed up pennies make excellent buck shot kg. One just has to be smart enough to make use of what you have. How are you going to put to use all that manure you keep? And Monsanto is not your friend.

            up the hill
            airborne

          • Vis Fac

            FAL – 7.62 MM x 54MM .308 Remington- I am not impressed. If I were you I’d sell it or give it away for you would certainly shoot yourself in the foot like you do on these discussion forums. My AR is multi round capable 6.5 Grendel .498 SOCOM . 5.56 NATO or .50 Beowulf I decide what platform I want to use. You can’t use the worthless sawdust taking space in you cranial cavity let alone provide lucid rebuttal.

            Libertas inaestimabilis res est

            Semper-Fi

          • KG

            While your changing barrels on you AR and opening cans with the can opener attached to your picatiny rail, I’ll be drinking Shiners with my friends.

            You couldadmit that being a ‘survivalist’ is really stupid and join with you fellow Americans, or die alone in your buried Conex box. It’s up to you.

        • TheOriginalDaveH

          Force says — “Because of a growing worldwide silver shortage, the Coinage Act of 1965 authorized a change in the composition of dimes, quarters, and half-dollars, which had been 90 percent silver. Silver was eliminated from the dime and the quarter”.
          Silver was eliminated from the coins because it had more value than the face value of the coins that were being produced. Eventually there will be a “shortage” of any metal used to produce the coins as the value of the metal exceeds the face value of the coins that use it.

          • Vis Fac

            Ya Think? I was providing dates we all know why or at least should know.

            Libertas inaestimabilis res est
            Semper-Fi

    • red neck

      KG… you are stuck on STUPID as usual…..
      But hey we didn’t expect anything else form you so you remain on track as an imbecile….

    • jdn

      Yep typical response to financial situations by a democrat , ” Well then , just GIVE me that ‘worthless’ money!”. How much welfare and food stamps do you get ? And yes we would miss your postings if they ever took away your Obama phone .

    • Vis Fac

      KGB– Yeah in case you haven’t noticed ROME fell, as did the Soviet Union, and so will the US. Morons like you haven’t the brains God promised little apples let alone the ability to recognize red flags of impending financial chaos. You greedily gobble up the slop (propaganda) the government puts in your sty and happy as a sissy in a carrot patch. You are so full of slop and don’t care to know that the government has been waging an undeclared war on the US citizens. The signs are obvious and you like the majority in the US are totally oblivious!
      I started trading my worthless paper for tangible items years ago. The banks are doing so now by buying gold in case you didn’t know (or care) banks control the price of gold so any paper you have in a bank as well as items in THEIR safety deposit box is in reality the bank’s property. When they decide to fold you will not have access to your (oops the bank’s) property. So go ahead hoard that paper it will keep you warm at night that is until you have no more to burn!
      Libertas inaestimabilis res est
      Semper-Fi

      • KG

        So, you own no stocks? No Bonds? No real Estate? What are you going to do when you retire? Don’t you get it? If they ain’t no Dollar their ain’t no America. And don’t think you will get any charity from you military buddies. Because THEY are all in the same boat. As well as all of those “minorities’ you want to kill.

        • TheOriginalDaveH

          Investment advice from a commie Unionist — Priceless!

        • Vis Fac

          I own real estate a TANGIBLE asset. Stocks and bonds are worthless. I have been retired for at least 10 years and doing quite well. I traded my worthless script for TANGIBLE assets, like Real estate 200 +acres away from society with wood lands water and pasture land. I traded for worthless script for Platinum, Palladium, Gold and Silver etc. I bought guns lots and lots of guns installed solar and wind generation systems and am rather self sufficient.

          I knew long ago things were going to go south I had seen it first hand overseas in Greece and Spain. I decided that it was incumbent on me for my survival on no one else.

          Unless it came from your necrotic cerebrum or hypoxia induced coma, I don’t know where you got the idea that I want to kill minorities (maybe that is a latent tendency of your subconscious that you want to act upon) but I never advocate violence. only to respond in kind.

          I feel sorry for you KGB you are viewing the world through rose colored glasses because their “Ain’t no dollars” just worthless paper and the America of today is NOT the America I grew up in.

          Libertas inaestimabilis res est
          Semper-Fi

          • Karolyn

            Force: Sounds like you live in a wonderful place.

      • Louis Lemieux

        If what you’re saying is to come about, do you think you’ll be safe surrounded by a couple hundred million individuals starving?

        • Vis Fac

          What I am saying is that I WON’T be around several million starving people. They will be fighting each other in the city for what is left after the government seizes all the food.

          I am ultra rural on 200+Acres and fairly self sufficient. I have enough supplies and the ability to grow my own food and enough livestock to sustain our five children and their families. It’s all in how you plan

          Libertas inaestimabilis res est
          Semper-FI

          • Louis Lemieux

            Good luck fending off millions of starving and armed people looking for your food!

          • Nadzieja Batki

            So you are advocating Theft by any means possible.

          • Louis Lemieux

            If you don’t believe starving people will steal in order to survive, I think you’re wrong.

          • TheOriginalDaveH

            Of course they will, Louis. You’re stealing right now and you aren’t even starving.

          • Vis Fac

            Luck is not part of the equation because we with the help of God make our own luck. You obviously haven’t understood a word that I have said or you know that I am well removed from large groups of people and have ample assets for defense Secondly you haven’t a clue as to my whereabouts so finding me and my family would be problematic. Should you manage to find the general location I would see well before you could locate me thirdly. I since I have black operations experience and a rather large family we all know how to defend ourselves. I fear the government more than a hungry mob of untrained individuals. It’s all in the planning

            Libertas inaestimabilis res est

            Semper-Fi

          • Louis Lemieux

            If you feel secure and happy living in your cocoon, so be it.
            Trust and love go hand in hand and I trust the decisions of my fellow citizens at the polling booth.

          • Vis Fac

            When have I given you the Idea that I am in a cocoon? Living in God’s clean air away from you morons is not what I consider living in a cocoon!

            If anything, you are trapped in your own cocoon having to fend of crazy people who are only after what you have, living day to day worried if you have another paycheck to last another week. I never worry about being mugged waiting in line to get a cup of coffee. Or sit in a movie theater and wondering if some crazy is going to shoot up the place.

            If I am in a cocoon then by all means I’ll happily dwell in this 200+acre cocoon of mine. Live your life in a rat race? BTDT no thanks.

            Libertas inaestimabilis res est
            Semper-Fi

          • TheOriginalDaveH

            Oh please, Louis. You take peoples’ money forcibly using Government as your proxy takers, and then you have the gall to refer to yourself as “Trust and love”?
            You are nothing more than a common thief, Louis, and an ignorant one at that.
            http://mises.org/daily/4125

          • Nadzieja Batki

            Such Bull, Louis Lemieux. The reality is that you don’t trust your ideological fellows that is why you want the government to force all people to take care of you. History bears out what I have said.

          • TheOriginalDaveH

            Are you threatening Force, Louis?

          • http://www.OlGreyGhost.Blogspot.com/ Ol’ Grey Ghost

            Nah, he’s just wishing him well, and warning him of the threats he will be up against in a sarcastic sort of way.

            Most of the millions will not make it beyond 100 miles from the cities they will be fleeing. Those who get farther will be so dispersed that they will have a hard time homing on one’s site, unless “they can smell your cookin'” (OPSEC, OPSEC, OPSEC!!!).

            If you can force them through a bottleneck-type land feature, they become easier to pick off one at a time. That’s where my training as a SWAT marksman will come in handy. Best of luck to everyone for the coming “Zombie Apocalypse” and hope to see y’all on the other side…

    • Ried

      KG, what you offer is not worth a sheet of Charmin . . . let alone worth a piece of “Federal Reserve Note”.

    • TheOriginalDaveH

      Talk about a simplistic, conjectural statement. Before the Roman Empire, there was the Roman Republic which lasted for about 500 years. The Roman Empire also lasted for about 500 years and underwent many transformations during that period. Their fall came much the same as ours will come, Leaders grabbing an increasing amount of power and greedily robbing the citizens of more and more of their wealth until their house of cards could no longer stand:
      Inflation and the Fall of the Roman Empire
      http://mises.org/daily/3663
      From the article:
      “Monetary policy therefore always serves, even if it serves badly, the perceived needs of the rulers of the state. If it also happens to enhance the prosperity and progress of the masses of the people, that is a secondary benefit; but its first aim is to serve the needs of the rulers, not the ruled”.

    • http://www.OlGreyGhost.Blogspot.com/ Ol’ Grey Ghost

      Funny how “KG” and “hipshotpercussion” both get the history of the fall of the Roman Empire, but they emphasize different points. The Romans debased their currency to fund military excursions that were long on excursion and short on any benefits that would “promote the general welfare” (though certain citizens that were “more equal than others” made off quite well as “TheOriginalDaveH” points out). This led to the collapse from within that made it easier for outside forces to invade and conquer what was left.

      The U.S. is going down the same road to destruction. As Mark Twain said, “History doesn’t repeat itself, but it sure rhymes…”

  • ONLYJB1

    We need to do away with the Federal Reserve once and for all!

    • Esther

      The tax code is another example of absurd. What happened!: The “smart” people like Bernanke in the culture… foxes in charge of the hen house… from our esteemed universities (are they?)… have only served to increase the number of people effected by fiat.

  • doktor don

    An unholy thought: is it possible that Producers have switched to, “Rent Seeking,” because of the Regulations, Expenses, and Risks – – not to mention Taxes – – to start a new Enterprise? And, the time frame can be lengthy, as, “Start Ups,” jump through the required hoops; dot the, “i’s,” and, “cross the t’s.”
    That’s the prior first question. The second: are we losing the Spirit driving innovation and Inventiveness; as a result of the obstacles (real or imagined), that are perceived as being very difficult to deal with; or, overcome?
    Today’s Economic Climate is tough enough! for one to consider taking a Risk. Maybe, that’s why Big Corporations, Bankers, and the Rich; are sitting on all that Cash – – ill-gotten, or not.
    If there is an ounce of truth in any of this; an Economic Recovery could be well down the road – – if ever. For all of FDR’s Alphabet Soups; their Cost; and their lingering hangover today; tinkering; or, trying to overhaul the System; nothing has worked! Tough to out-smart the, “invisible hand of the free market;” and, perhaps the Will of God. We all need to sit back; take a deep breath; stop the, “tit-for-tat,” wrangling; and work together to save something for the Grand Kids.

  • Louis Lemieux

    It’s pretty hard to understand the price of gold or anything else that keeps fluctuating all the time. If wisely, and I say wisely, printing money is so bad than the first dollar printed should never have been printed. I just don’t see it that way!

    • Vis Fac

      That was what Thomas Jefferson warned us about. A different analogy of describing inflation and devaluation would be having a bottle of liquid soap with the soap representing the value of money. You have some dirty dishes that need washed so you pour some in the sink (spend a little the concentration in the bottle is the same but you have less soap).
      You now have your eye on a spiffy set of new dishes that need cleaning thus adding more dishes to wash. You pour in more soap. by now the bottle is nearly empty and you have your eye on still more dishes but hardly any soap so you ad water to refill the bottle. (Print more money). The bottle looks as full it was originally but the concentration of the soap is not what it once was so more soap is needed to do the same job the original concentrate used to do.
      If you keep up the cycle of buying more dishes and refilling your bottle you will soon you will have a bottle of water that does nothing to clean your dishes just like the value of fiat paper. Dilution (printing more money) makes what you have worthless. that is why
      gold is more valuable than sand so I see our paper money comparable to sand. Too much sand not enough gold
      Libertas inaestimabilis res est
      Semper-FI

      • http://batman-news.com samurai

        This is off subject, but here is an article showing the elementary school Obama bin Laden attended in Indonesia was just attacked by terrorists.
        http://www.wnd.com/2013/08/terrorists-strike-obamas-jakarta-elementary-school/
        Keep up the good fight fellow patriot. FOR GOD AND COUNTRY! 하나님하고 나라를 위해서!
        You need both love of country and faith in GOD to be a patriot.
        “Whatever makes men good Christians makes them good citizens.”
        Daniel Webster
        American statesman
        “Defender of the Constitution”
        Devout Christian

        • Vis Fac

          I’m Sure ODUMBO could care less as he only cares about HIS agenda. We all know he is Muslim and his words prove it in a speech we once said’ For whatever we once were we are no longer a Christian nation” That speaks volumes and the American people could care less because they have embraces hedonism and depravity.
          Libertas inaestimabilis res est
          Semper-Fi

      • Louis Lemieux

        I believe Thomas Jefferson was warning us of runaway inflation. Your analogy is more befitting dollars being worn out by daily usage!

        • TheOriginalDaveH

          Good Grief, I can’t even imagine what it must be like to be so dang clueless.

          • Louis Lemieux

            That’s just an opinion like so many others!

          • TheOriginalDaveH

            No, Louis, it’s fact. You are as ignorant as I’ve ever known anybody to be.

          • Louis Lemieux

            That’s what you always resort to when you don’t have any good answer. It reflects who you really are.

          • TheOriginalDaveH

            No, it reflects that I don’t suffer fools very well. You are a fool, Louis.

          • Nadzieja Batki

            I’ll second that, TODH.

          • Louis Lemieux

            I’ll let readers decide that. I learned a long time ago when someone talks the way you do about people you don’t agree with, it looks bad for the one talking that way.

          • TheOriginalDaveH

            I guess that explains why you get mostly thumbs down on your comments, Louis?

        • Vis Fac

          My analogy apparently was too much for you to comprehend even though it was done in a manner a second grader would understand.

          Pity the fool who believes those as moronic as he.

          Libertas inaestimabilis res est
          Semper-Fi

          • Louis Lemieux

            Comparing the dilution of soap to the devaluation of the dollar? lol!!!

    • 1baronrichsnot1

      Gold price stays the same, the value of paper currencys’ fluctuates, Louis. They flux daily, they flux over time, matter of fact they have fluxed to 1350 of them to equal 1 ounce of gold, so gold has captured $1328 bucks worth of inflation since 1967, makes everything about 13 times more expensive than 1967 in paper dollars. That’s over 46 year period, so average of 28% increase per year in cost of living index. You have to keep printing more and more, thats the nature of this beast! Hope this helps if you’re still around.

      • Louis Lemieux

        So what if it takes more dollars now to buy gold and everything else than it did in 1967. I don’t think too many workers then were earning $10.00 an hour. As long as we don’t have runaway inflation, as long as the cost of living stays around 3% a year and wages go up too, people and markets have time to adjust. The economy is alive, it’s not static and I’d rather see a little inflation than deflation.

        • TheOriginalDaveH

          Louis says — “So what if it takes more dollars now to buy gold and everything else than it did in 1967″.
          Tell that to the poor folks, Louis, who through ignorance and trust of Government kept the money they worked hard for in cash savings and saw its buying power decrease by 85%. Or those who were living on fixed incomes, who lost 85% of their former purchasing power with those fixed incomes.
          Let me put that another way, so that even you can understand, Louis. In 1967 $1.00 could buy as many goods as it now takes $6.99 to buy. So if somebody had worked hard and saved $100,000 and left it innocently in the bank, they can now buy only 1/7th of the amount of goods that they could have bought with that money in 1967. That’s how the Federal Reserve robs people of their wealth.

          • Louis Lemieux

            “So if somebody had worked hard and saved $100,000 and left it innocently in the bank,” I like the way you use the word “innocently”. If someone buys a house with that money and sells it 25 years later, he can double his money several times. That’s what I did in 2008. If your too “innocent” you won’t be investing your money wisely and you will lose.

          • TheOriginalDaveH

            If you had any brains at all Louis, you would know that the house that he sold for “double his money” was only reflective of the loss in purchasing power of the American dollar. If that person had truly “doubled” his money, he could buy two houses equivalent to the house he sold with that same money.

          • Louis Lemieux

            Actually I said double his money several times. Even if he just comes out even, he hasn’t lost any money like leaving it in the bank.

          • TheOriginalDaveH

            Just change “two houses” to “several houses” in that case, Louis.
            And it’s interesting that you’re now apparently admitting that those who leave their money in the bank will lose it to inflation. You can’t have it both ways, Louis, even if you are an ignorant Liberal Progressive.

          • Louis Lemieux

            Leaving money in savings or checking at the bank should be just for a temporary period only.

          • TheOriginalDaveH

            Letting Liberal Progressives loose in the general public should be only temporary.
            It is none of your business, Louis, what people choose to do with their own hard-earned money.

    • TheOriginalDaveH

      Here are a few books you can read if you really want to learn, Louis. I doubt that, but I’m giving you the benefit of the doubt:
      http://mises.org/books/whathasgovernmentdone.pdf
      http://mises.org/Books/historyofmoney.pdf
      http://mises.org/books/moneyproduction.pdf

      • Louis Lemieux

        Not that I don’t believe in individual rights and freedom, but libertarians to me concentrate too much on the value of material goods at the expense of care to human needs.

        The welfare state was an enormous advance over the cruelty and indifference to human suffering that characterized early capitalism. We’re not going backwards, we’re progressively going forward. I support a society in which individuals flourish through cooperation.

        We need a morally-conscious economy based upon the principles of service, cooperation, and social justice while opposing possessive individualism.

        • TheOriginalDaveH

          Did you read anything, Louis?
          I thought not. It would be scary to learn anything wouldn’t it? Then your whole house of ignorant Liberal cards would come crashing down.
          The welfare state is an enormous advance only to thieves who think sharing other peoples’ hard-earned money against their will is somehow “compassionate”.
          There is nothing about discouraging people from being productive that could be considered Progress by any thinking people. Your Greed is just impairing your logical vision.
          Imagine a thieving, coercive, Liberal Progressive talking about “morally-conscious”. You don’t know the first thing about morality, Louis. You only know what you want and are willing to take from other people.
          Those people who aren’t sharing the trough with Louis, or who would like to break away from it even if they are, should read this and learn some reality instead of the Propaganda that people like Louis would like you to swallow:
          http://library.mises.org/books/Kel%20Kelly/The%20Case%20for%20Legalizing%20Capitalism.pdf
          This book is written largely for the average person who is not well-versed in economic jargon.

          • Louis Lemieux

            I don’t believe in blind obedience to any book or any ideology. Common sense is what I look for and I don’t care where I find it.

            I fully understand that we have different values, that our personal choices shape our lives and the future of our great country.
            I maintain that the welfare state was an enormous advance over the cruelty and indifference to human suffering that characterized early capitalism. If the well-to-do could not or would not help enough those people then, I don’t believe they would act differently today without welfare.
            No doubt improvements could be made in our welfare system to root out those who abuse of it.

          • S.C.Murf

            Maybe Karolyn is Mormon and has 2 husbands. Louie sounds like her too

            up the hill
            airborne

          • Karolyn

            Thanks, S.C.! What is wrong with picking and choosing what you agree with no matter where it comes from? Pigeonholing people is for those who are too lazy to really comprehend what someone is trying to say and only highlight those points they disagree with.
            Of course, a Mormon woman could not have two husbands. :-) (not that I would want 2 husbands)

          • TheOriginalDaveH

            Louis says — “I don’t believe in blind obedience to any book or any ideology. Common sense is what I look for and I don’t care where I find it”.
            Translation:
            Louis is afraid he might learn something.
            As far as the search for common sense goes, Louis, it’s obvious that you need to keep on searching.

        • Vis Fac

          What a load of you know what! Welfare is merely a crutch used by those who REFUSE to take responsibility for themselves. There are plenty of avenues available for one who truly wants to be independent. Since the beginning of time there have been people who leech off others. The reason they leech is because someone is always willing to provide for the indolent.

          I can guarantee that if faced with starvation one would quickly learn to fend for them self. And if you think supporting those who refuse to do for themselves is being “progressive” you have another thing coming. Anything hampering progress (as those who leech off others) is IMPEDING progress, and NOT adding to the progression of society. You liberals and libertarians are the ones who have it backwards.

          Libertas inaestimabilis res est
          Semper-Fi

          • TheOriginalDaveH

            Libertarians? You haven’t a clue what you’re talking about, Force. Sorry for my impatience with you, but I’m not very good at suffering fools.
            The Libertarians are in the forefront of Real Economics and Real Freedom. Nowhere in the Libertarian philosophy is there anything about people being responsible for other peoples’ failures.
            Obviously you didn’t read that book that I linked you to.
            http://library.mises.org/books/Murray%20N%20Rothbard/For%20a%20New%20Liberty%20The%20Libertarian%20Manifesto.pdf

          • Vis Fac

            Libertarians have their OWN agenda and I am tired of ALL political parties and just to be able to vote I’m registered as an independent. I don’t listen to ANY propaganda from any party I do my OWN research (as others should as well) and vote how I see fit. I cannot help if there is a lot of STUPIDITY America
            I know what made money for me I know how do apply what I have learned so I could retire in comfort. We all have the opportunity to succeed most are too lazy to do what is necessary.

            Libertas inaestimabilis res est
            Semper-Fi

          • S.C.Murf

            Sounds like you could be Karolyn”s husband.

            up the hill
            airborne

          • Vis Fac

            Karolyn might make a very good ally but my wife of 44 years is my best friend and true ally. Personality and demeanor wise wise Karolyn is close.

            Libertas inaestimabilis res est
            Semper-Fi

          • Nadzieja Batki

            God help you if you think Karolyn is close. I thought it was a myth that men are stupid to what women are like , but guess not.
            Force Recon, you didn’t choose your wife, she chose you. A woman chooses the man who chooses her.

          • Vis Fac

            There is a grain of truth in what you say at first we men think in a location slightly south of the equator. We need to put forth the effort to convince the lady we are what she needs. I am quite comfortable in my marriage otherwise it would not have endured four plus decades. Both the wife and I are open and friendly (in other words we flirt and make jokes) My favorite ice breaking line is “I am the guy your mother warned you about” and in my case it was LITERAL. My late mother in law said so to my wife in from of me. She later warmed to the Idea and treated me as her own son (actually better)

            Libertas inaestimabilis res est
            Semper-Fi

          • http://cowboybyte.com/ Alondra

            Your right. The FINAL choice is woman’s. And often is “blind”.

          • TheOriginalDaveH

            How about learning what that agenda is before bad-mouthing a whole group of people?

          • Louis Lemieux

            Not all people on welfare refuse to take responsibility, maybe too many are, but many are there because they don’t have the choice. Doing something about those who don’t take responsibility is fine with me.

          • Vis Fac

            We all have a choice. I chose to be industrious so it was necessary for me to apply myself and make a few sacrifices to get where I wanted to be.

            People who are not willing to apply themselves make sacrifices, study hard in school or do what ever it takes to succeed They made the choice be it subconscious or not to be where they are and not where they wanted to be.

            I was not afforded any opportunities that others have not I chose to realize that my success was dependent on me and nobody else.

            Unlike most people, I knew no one was going to provide for me and I couldn’t place any blame for failure on anyone else. It took several attempts and hours of work ans sacrifice but tenacity paid dividends.

            The next time someone tells you that it’s not their fault ask yourself if there was something they could have done differently to alter the outcome. Maybe study in school instead of playing vidiot games, Take a chance at an opportunity that might have paid off. No we are where we are because WE CHOSE to be where we are. we cannot blame others for our failure.

            Libertas inaestimabilis res est
            Semper-Fi

          • Bob666

            Yo Force,
            A good realistic analogy of life.

            Life is what you make it and those of us who have had success are generally not any smarter or better positioned by birth right, but get where we get by a combination of calculated risk and a lot of very, very hard work.

            Few people with a sense of entitlement are truly successful.

          • Vis Fac

            BOB I don’t know of anyone with an entitlement mindset to be successful. In fact just the opposite.

            Michelangelo said “The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.”

            Too many people are satisfied with just getting by not realizing what is getting them by today will not be enough further down the road.

            Libertas inaestimabilis res est
            Semper-Fi

          • Karolyn

            Unfortunately, not everyone has the intelligence or ability to climb out of the cesspool they may have been born into, and they do need assistance – and not necessarily financial assistance. They need people who care enough to give of themselves to further the cause of humanity. I’ve been watching a show called “Secret Millionaire” about rich people who disguise themselves as regular people and move into poor neighborhoods for a week, while volunteering for assistance organizations. At the end of the week, they donate large amounts of money to the organizations they choose. The people in those organizations give everything to help others. There should be more like them, and there should be more teachers willing to go that extra mile. More of that type of assistance would go a long way to shortening the welfare roles in this country. As has been posted here by someone else, what we need in this country is more cooperation and compassion.

          • TheOriginalDaveH

            Government spends 40% of our GDP. Is it any wonder that jobs are scarce? And they stifle another 10% of our GDP with their numerous regulatory hurdles.
            Government consumes wealth. They don’t create it. Only the Private Sector creates wealth. If you were truly interested in the poor people, Louis, you would work to shrink Government so that there is more money to be spent by the Producers of wealth which would result in more Real Jobs, not the make-work jobs as provided by Government.
            You could study this book, Louis, and learn what I’m talking about, but you won’t, because you aren’t really interested enough in the condition of the poor to do something about it:
            http://library.mises.org/books/Kel%20Kelly/The%20Case%20for%20Legalizing%20Capitalism.pdf
            Useless Liberal Progressives!

          • Nadzieja Batki

            When someone says that they don’t have a choice they already made a choice and it usually means the easiest way out for them and damn everyone else.

        • KG

          Here, here!

        • speedle24

          Louis, why are you incapable of understanding the concept of individual freedom? It IS all about material things and the right to pursue one’s own personal goals without interference (unless it brings harm to others). If an individual chooses to amass wealth and keep it to himself, that is his right. If he chooses to share his wealth with others he can do that as well (as he sees fit, not the government).

          Aside from the very basic human needs (food and shelter), the government has no business determining who needs more and how much.

          I assume when you talk about “early capitalism” you are talking about the steel and railroad industries. Man you really need to do some research. These industries have a story worth exploring by itself, but individual freedom and the free market has nothing to do with what you cite as “early capitalism”.

          You write “We need a morally conscious economy based upon principles of service,…………….and social justice while opposing possessive individualism.” Do you realize that belief makes you a Stalinist (Communist)? You dunce, who exactly is going to determine “what” is “morally-conscious”? Can you not see the folly of this simple minded ethos?

          • Louis Lemieux

            About 15 million children in the US live in food insecure households while some people have enough money to buy hundreds, thousands of houses worth $200,000.
            I don’t think this situation would improve under a libertarian country, on the contrary. We need more cooperation, not less.

          • speedle24

            15 million huh? Where did you get that number Louis, and what exactly is a “food insecure household”? Does that mean one that does not follow Mrs. Obama’s healthy diet regimen, or one that has too much red meat, or what?

            No one, that’s “No One” goes without food in this country unless they are sequestered in some area that is not accessible, and I doubt there is any at all. What exactly are you trying to correct here Louis.

            It seems the real truth is that people of your mindset are not really all that concerned about people starving so much as you resent those who are rich (and you want to take a wad of their riches from them with the backing of law enforcement guns).

          • Nadzieja Batki

            No one needs to go hungry in this country but the Dems/Progs/Leftists have run of battering irons to use against the people so they have to use guilt.
            All parents can find churches and food banks and Salvation Army and Goodwill to take care of their children but if they are too lazy to make an effort, the children do pay for the sins of the parents.

          • Louis Lemieux
          • TheOriginalDaveH

            As usual, when the Liberal Progressives cause a condition, they offer more of their services as a remedy.
            Only Liberal Progressives can be convinced that we can put out a fire by throwing even more gasoline on it.

          • Nadzieja Batki

            So why aren’t the parents taking care of the children they created? They had their sex and they created a life, their responsibility. I don’t care to have other people’s children foisted on our pocketbook. But you are nothing more than a lazy S_B abrogating responsibility and couching the abrogation in fancy language to induce guilt if someone told you to sod off and take care of your own spawn.

          • http://cowboybyte.com/ Alondra

            Exactly. Like this one – 15 Kids from 3 Baby- Daddies. And she says that we must pay for her 15 kids and for herself. http://www.youtube.com/watch?v=RBqjZ0KZCa0
            P.S. She is not lazy only for one kind of work…

        • Vis Fac

          Why do you think I made the comment? I know full well what libertarians stand for. They are no better than anyone else so get off your high horse. and join the responsible crowd instead of hiding behind a group of hypocrites!

          Libertas inaestimabilis res est
          Semper-Fi

        • Frank Kahn

          Okay, Louis, you are either stupid, or you have a strange definition of individual rights and freedoms.

          Your statements are a perfect reflection of liberal, socialistic communism. You seem to adhere to the idea that there is some form of utopia possible, if only the rulers will control everything for us.

          There are many things wrong with your post (everything), but much of it is in the definition of words or interpretation of what something really is.

          INDIVIDUAL RIGHTS AND FREEDOM – AMONG THESE, THE MOST IMPORTANT IS PROBABLY SELF DETERMINATION. THE RIGHT TO DO AS ONE SEES AS BEST FOR HIM OR HERSELF. TO CONDUCT THEIR LIVES WITHOUT DEMANDS AND RESTRICTION OF GOVERNMENT. TO DO AS THEY WISH, AS LONG AS THEIR ACTIONS DO NOT DIRECTLY INTERFERE WITH THE RIGHTS OF OTHERS.

          This gives me the right to amass fortunes and be as greedy as I want. It also gives me the freedom to be as charitable as I please. Your touting of the “welfare state” is anathema to this concept. In the welfare state, I have the right to obtain what is necessary to survive, and the requirement to give the rest to others. These are not individual RIGHTS, they are government imposed standards.

          Capitalism causes cruelty and indifference to human suffering? This statement is so ludicrous it could take days to list all the things wrong with it. Cruelty, and indifference are human traits. They exist in many people. They are not universal, but they can be advantageous in some endeavors. If we accept that there are greedy people, who by nature are indifferent to others needs, then we need to simply decide if capitalism is more conducive to their goals than other forms of commerce. If instead of greedy people using capitalism to gain their wealth, we assume that it is capitalism that creates greed, then the following statements would be true. If you eliminate capitalism from an economy all greed will be reduced and or eliminated. In addition, there would be less suffering by citizens. Now, since socialism is most prevalent in communist countries, we should look at these countries for greed and suffering. Lets take Russia and China as examples. In Russia, you were given what you need, minimally. Everything else went to the state. Were the common people well off, no suffering? Were the rulers economically equal to the commoners? Were the citizens happy and free to live their lives with dignity? Apply the same questions to the commoners in China. In both countries, the commoner works for almost nothing, they have little to eat, bad health care and are dirt poor. They were constantly under harsh rule and subject to mass killings. The ruling class on the other hand are living the lives of the rich and famous. Is that due to greed? Is the lack of capitalism creating a greed-less and compassionate society?

          Next comes that dangerous and very tricky word moral. In what frame of reference is moral being used here? Who’s morals are going to be used to determine what is good? I can give you a hint, whatever you consider to be a moral imperative is wrong. Just because you THINK it is a morally required thing to give to the poor, does not make it right to force me to do it.

          Now, cooperation, yes this is good. Actually, if capitalism works properly, cooperation is the cornerstone. If I produce something that is viewed as good for society, they will reward me with patronage.

          And finally the worst of your communistic crap. Social justice (whatever that is) is better than personal wealth. Lets see if you can define how JUSTICE is attained, through government force. What is social justice? Is it economic equality? Is it equal rights? How would you define justice in this case? Is it JUST(ICE) to take (steal) from people with wealth, to give to those with nothing? Does, everyone that doesn’t work, deserve exactly the same things that I have? If I make enough to provide for 4 families, is it fair to take 3/4 of my earnings and support 3 other families? Does it give them any motivation to find their own way? Would you consider this a job creator or job killer? If I can have all I need without working, why keep my job. I can quit and let someone else pay my cost of living.

          OOPS, just crossed the line back into greed. It would appear, to me, that I would be just as greedy for wanting something for nothing as I am for wanting to keep what I earn. So, is your socialist society based on social justice or personal greed?

    • TheOriginalDaveH

      Gold, like any commodity, will fluctuate in value depending on peoples’ desires and needs. But it’s relative value to other commodities stays constant over time within a certain range of fluctuation.
      That’s not true for the paper dollar which also fluctuates in value depending on peoples’ desires and needs. In the case of the paper dollar, due to profligate money creation by the Federal Reserve, it’s buying power is decreasing over time within a certain range of fluctuation.
      As Bob stated, gold will still buy other commodities in roughly the same proportion that it could buy them in the past. But the dollar can only buy a fraction of those other commodities that it could buy in the past.
      For instance, even by the Government’s own biased Inflation Calculator, one dollar in 1913 could buy the same basket of goods that it takes $23.59 to buy now:
      http://www.bls.gov/data/inflation_calculator.htm

      • Louis Lemieux

        “As Bob stated, gold will still buy other commodities in roughly the same proportion that it could buy them in the past.” This is true not just of gold. In a barter system the intrinsic value of something will vary little, according to supply and demand. Money on the contrary is just a convenient substitute for easier exchange. What so dramatic about it loosing value over time. You just need more of it to buy the same thing.

        • TheOriginalDaveH

          That statement falls under the category of:
          “It’s better to keep your mouth shut and have people suppose you ignorant, than to open it and remove all doubt”.

          • Louis Lemieux

            It’s too bad it’s the only rebuttal you could find!

          • TheOriginalDaveH

            There is no rebuttal to your nonsense, Louis, because you didn’t state anything intelligent enough for me to rebut.
            For instance, your last little gem — “What so dramatic about it loosing value over time. You just need more of it to buy the same thing”.

            I’m going to assume that you meant to say “What is so dramatic about it losing value over time? You just need more of it to buy the same thing”.
            You “just” need more of it to buy the same thing? Duh, I think that is what Bob was talking about, Louis — the loss in purchasing power of our saved dollars and fixed incomes. And to make light of that loss is what we’d expect from an ignorant Liberal Progressive.

    • BritInNC

      The first paper dollars were Gold and Silver Certificates, not Federal Reserve Notes. BIG difference

  • Warrior
  • laura merrone

    This graphically displays in this article the mess were in. Its a miracle we function at all and our currency is worth anything. I know this sounds naïve, but I’m cashing out my savings as little as they are and putting it in the bank and using them. The way inflation works, you won’t be able to keep up with it anyway and the stock market is on a terrible slide…I know this sounds naïve, but I “trust in the Lord with all my heart and lean not on my own understanding”. He’s going to take care of us no matter what. If I didn’t have that assurance, I wouldn’t be able to face tomorrow…

  • TIME

    Dear People,
    This is not directly related, but for you that have gray matter then this should help you gain a TIME line.
    As in when will the us dollar fall so much so that even the brain dead will sadly even get it.
    Look at the Japanese market for clues, keep in mind their high level of debt, I believe its now well over a “QUADRILLION” Dollars.
    When they go, we are not long, as in within a few weeks.
    That my good people is when this nation will see all hell break loose.
    Any economist worth their weight will tell you that Japan is the linchpin to the whole worlds currency wars that are going on as you read this. To many reasons to even try and list them, do your own research and it will explain it all to you.
    Will there be a RE SET? Yes, and that’s when the “New World Order” will come into full swing, of what by the way the new “cashless social structure” will be based on GOLD backing.
    BUT ~~~ Prior to this event talking place Many countless billions of people the world over will be moving on to meet their maker.
    As we who have our eyes open know that within 100 days of a full scale break down well over 80% of the population of this nation will be moving on by one factor or another.
    Keep in mind lack of food. medicine, lack of water, being in the wrong place at the wrong time and being killed by either a Gang of roving mad people, not unlike the walking dead.
    Or being killed by a mercenary hired by what was the De Facto Corporation known as the United States also the holding company for the “Bank of London / Rothschild’s” empire.
    All this will come to pass, and more after its all over and done, then the mass chipping with RFID chips will take place within the small amount of population left, anyone who is now known as a problem will be removed to a camp for elimination, now you should be able to better understand the nsa issue.
    Peace and Love, ** The Good news is that The Christ will allow you to repent but ~~ that’s up to you, and only you.
    There is no collective and there is not salvation given by Lucifer who will dazzle you with technology and nothing more.

    • http://batman-news.com samurai

      Well said! Well said! Keep up the goof fight fellow patriot. Here are some articles dealing with the current economy.
      http://www.freedomoutpost.com/2013/08/the-designed-economic-crisis-is-coming-and-its-going-to-be-worse-than-you-thought/
      http://www.conservativevideos.com/2013/08/social-green-light-to-be-a-bum/
      Here is one where Ms. Powers want to give away some of our sovereignty to the U.N.
      http://www.politichicks.tv/column/u-s-ambassador-power-wants-to-give-pinch-of-sovereignty-to-un/
      FOR GOD AND COUNTRY! 하나님하고 나라를 위해서!
      You need both love of country and faith in GOD to be a patriot.
      “Resistabce to tyrants is obedience to God.”
      Benjamin Franklin
      Founding father
      Devout Christian

      • KG

        I’m still waiting for those Bible verses where Jesus says good things about religious people.

        • S.C.Murf

          You will still be waiting kg at the white throne judgement and it will do you no good. Have a nice no-after life kg you have made your choice daily.

          up the hill
          airborne

          • KG

            But, tell me, where in the Bible did anything good happen to someone religious? If you can find that, then I might be willing to vote Republican.

          • Vis Fac

            KGB you are a heathen and a LOSER not to mention a MORON. You will never have anything of value because you deny God as America has. America and the world have succumbed to the seven deadly
            sins and is paying the price

            Job’s Confession and Acceptance
            1 Then Job answered the LORD, and said,
            2 I know that thou canst do every thing, and that no thought can be withholden from thee.
            3 Who is he that hideth counsel without knowledge? Job. 38.2 Therefore have I uttered that I understood not; things too wonderful for me, which I knew not.
            4 Hear, I beseech thee, and I will speak: I will demand of thee, and declare thou unto me. Job. 38.3
            5 I have heard of thee by the hearing of the ear; but now mine eye seeth thee:
            6 wherefore I abhor myself, and repent in dust and ashes.
            7 And it was so, that after the LORD had spoken these words unto Job, the LORD said to El’iphaz the Te’manite, My wrath is kindled against thee, and against thy two friends: for ye have not spoken of me the thing that is right, as my servant Job hath.
            8 Therefore take unto you now seven bullocks and seven rams, and go to my servant Job, and offer up for
            yourselves a burnt offering; and my servant Job shall pray for you: for him will I accept: lest I deal with you after your folly, in that ye have not spoken of me the thing which is right, like my servant Job.
            9 So El’iphaz the Te’manite and Bildad the Shuhite and Zophar the Na’amathite went, and did according as the LORD commanded them: the LORD also accepted Job.

            The Restoration of Job’s Prosperity
            10 And the LORD turned the captivity of Job, when
            he prayed for his friends: also the LORD gave Job twice as much as he had before. Job. 1.1-3
            11 Then came there unto him all his brethren, and all his sisters, and all they that had been of his acquaintance before, and did eat bread with him in his house: and they bemoaned him, and comforted him over all the evil that the LORD had brought upon him: every man also gave him a piece of money, and every one an earring of gold.
            12 So the LORD blessed the latter end of Job
            more than his beginning: for he had fourteen thousand sheep, and six thousand camels, and a thousand yoke of oxen, and a thousand she asses.
            13 He had also seven sons and three daughters.
            14 And he called the name of the first, Jemi’ma; and the name of the second, Kezi’a; and the name of the
            third, Keren–hap’puch.
            15 And in all the land were no women found so fair as the daughters of Job: and their father gave them
            inheritance among their brethren.
            16 After this lived Job a hundred and forty years, and saw his sons, and his sons’ sons, even four generations.
            17 So Job died, being old and full of days.

            Libertas inaestimabilis res est
            Semper-Fi

          • KG

            Notice that this is addressed to the last church:

            Revelation 3 (King James Version)
            14 And unto the angel of the church of the Laodiceans write… I know thy works, that thou art neither cold nor hot: I would thou wert cold or hot…
            …So then because thou art lukewarm, and neither cold nor hot, I will spue thee out of my mouth…
            …Because thou sayest, I am rich, and increased with goods, and have need of nothing; and knowest not that thou art wretched, and miserable, and poor, and blind, and naked I counsel thee to buy of me gold tried in the fire, that thou mayest be rich; and white raiment, that thou mayest be clothed, and that the shame of thy nakedness do not appear; and anoint thine eyes with eyesalve, that thou mayest see….As many as I love, I rebuke and chasten:be zealous therefore, and repent.

          • Vis Fac

            And where do you suppose the riches came from? If not God. You wanted reference I provided reference you in turn as always twist and morph to suit. You lose all credibility

            Libertas inaestimabilis res est
            Semper-Fi

          • KG

            Did Job get his riches back by being a religious nutcase? I think it was nothing more than the realization that he was not G-d. And he learned it the hard way just to show that people who are rich and have need of nothing – G-d can change that in a second. So if you see a smelly dirty homeless person, G-d could put you there as well – in spite of any religious affiliation you may have.

          • Vis Fac

            I notice you can’t bring yourself to spell God That is why you have nothing and are always ANGRY. I don’t need to worry as GOD has taken very good care of me and my family because we thank him for our blessings.

            Lucifer is your god (notice lower case g) like your liberal friends, he fills your ears with empty promises and it eats at you. The more it eats at you the more vile you become.

            Job received riches because despite what was done to him, would not denounce God as you have done. It was a test of faith and belief in God’s mercy. You must earn your riches as you must earn your keep Trusting in and praising God earn you your keep

            Should God again take what he has given away I’ll know it is a test which I shall pass as I have done so several times in the past, and each time I wind up better off than before.

            You have no humility and a stone for a heart. All your prevarications to the contrary are meager attempts for self satisfaction. In the end you will be shut out and wondering what happened. May God have pity on your worthless soul.

            Libertas inaestimabilis res est
            Semper-Fi

          • KG

            Do you want to know why I spell the Creators name that way? Because I actually have respect for GAOTU. Unlike your religious nutcases who vote republican because they think they are more moral that the Democrats, I realize that since all men are unrighteous sinners, I vote for who will help me get what I can to be able to enjoy life like any other person. That’s why I work Union. And that’s why I vote Democrat. Because all the republicans have been doing is worry about women’s uterus’ instead of actually trying to get our country back to work. All of that ‘religious’ piety that Republicans display is nothing better than what the Pharisees and the Sadducees did in Jesus’ day.

            I know you would like to give a speech on humility, but, unfortunately, there aren’t enough people to hear you. The ‘stone’ heart I have is directed towards those Pseudo Christians who claim Christ but deny Him any power. And the Religious Right Republican/Libertarian Nazis who want to establish christian ‘sharia’ law.

            http://www.jewfaq.org/name.htm#Writing

          • S.C.Murf

            Now kg shows his true self. It comes right down to it he is all about self. When you were a boy and your mother would tell you to do something you would throw a fit until she told you to forget it wouldn’t you. kg is a taker and always will be.

            up the hill
            airborne

          • Elton Robb

            The rain falls on the Just and the Unjust.

            Read the book of Job.

        • FreedomFighter

          KG — He said to repent of your sins and follow him…
          Laus Deo
          Semper FI

        • FreedomFighter

          KG this guy is telling it the way it is…watch the video of this mans experience.
          Atheist, Dead On Morgue Slab, Wakes After Meeting Jesus In Heaven!
          http://jesus-loves-you.org/atheist-meets-jesus/#uXFEprFXGSmirVRZ.01

          Laus Deo
          Semper FI

        • red neck

          KG.. you are attempting to twist things in your biased direction once again…… Christ was ( is ) here to save the people from themselves and their evil, he did not come here to glorify those that are for him… Don’t twist things around to suit your disbelief !!!!!!

    • Vis Fac

      The BEAST is knocking on the door.
      Libertas inaestimabilis res est
      Semper-Fi

    • red neck

      Time…
      You are a good man and you tell the truth of what is really going on I just wish more people would see it…. This is all prophetic in nature…. God Bless…..

    • FreedomFighter

      We face 2 fronts on the war with evil the spiritual battle of mankind and the physical battle against evil on earth. This is multi-dimensional. what we see in our world, and the higher dimensions we cannot see readily, but have been described by shaman, sages and prophets for thousands of years. The real history of our planet earth and mankind has been hidden from us, invasion, genetic corruption, salvation…the prize is the enslavement of mankind, we only need make a choice of “freewill” to go along with Lucifer and his minions, or to resist and follow the way of freedom in Jesus Christ and the Father. The rules of the game are set — its our choice — choose wisely. Soon everyone must make a choice, no sitting on the fence will be allowed.
      Laus DeoSemper FI

      • grassroot

        And, as I’ve been saying for a while, obvious lines are being drawn and sides are being taken.

        By those who who can see with eyes other than
        their fleshly ones. And unless one is spiritual in
        the biblical sense, it’s all going to be like an

        avalanche. Get Godly wisdom and as he says in
        his word, ” Buy of me gold that does not tarnish”
        Get his wisdom by reading and assimilating his
        word and believing that he is the first and the last,
        and is sovereign in the universe.

    • JoeBlow

      I believe it’s a Quadrillion Yen = 10+ trillion dollars. No matter when you went from billions to now trillions and total derivative exposure of 400+ Quadrillion.

    • BritInNC

      It’s not a quadrillion dollars – it’s a quadrillion yen (about US$10.5 trillion). Regardless, given that the population of Japan is one third that of the US, this translates to an ‘official’ equivalent of us being in debt to the tune of about US$31 trillion. What’s more concerning is that their debt/GDP is now at about 250%

  • 1baronrichsnot1

    What do we need with a fed reserve chairman who doesn’t understand the price of gold in relation to dirty paper! If that was the case, why did roosevelt confiscate gold? Why weren’t we allowed to have it before 1967? We got it at $32 bucks an ounce, it immediately went to hundreds of bucks as the paper devalued. Every one understands that the dow covers inflation, as with gold. The dow at 15,555 =9.5 ounces of gold, what ever the price of gold x 9.5= the price of the market, S&P x9.5 should = close to the DOW, S&P now about 1725. If the market is below this no. the market is underpriced as to inflation, if over this no. the market is overbought per inflation. Gold buying is a way of solving a portion of inflation. Paper money burns, depreciates, rots, and if at the bottom of the sea or elsewhere, just disappears, evaporates, goes away. You never find any on sunken vessels and should you find some it’s probably not legal tender now, but gold, will still be there, ready to use, shiny, and has protected its value for centuries. That is the difference in price mr. Ben,Gold is real money, the only real money, but if we have to tell you, well you know!

    • Elton Robb

      Gold also makes great road pavement.

      • Bob666

        Yo Elton,

        “Gold also makes great road pavement”.

        Priceless!

        • Elton Robb

          That is what Saint Peter said, and that is what Jesus says. If you are a gold miner, and you go to God and all you have to show for yourself is “road pavement”, you’re going to look mighty stupid.

          • Bob666

            Yo Elton,
            Learned something new today,
            Thanks!

  • BUD USMC

    Hey recon that was the best description of old KG, that I have ever read. Keep up the good work. Government slop dam that was good.

    • Vis Fac

      Libertas inaestimabilis res est
      Semper-Fi

      • KG

        Dulce et decorum pro patria morti

        • Vis Fac

          I don’t think you know the meaning of that phrase. You certainly wouldn’t put yourself in harm’s way let alone happily die for this country.

          Many good people have willingly died so you can continue being an imbecile and demonstrate your penchant for stupidity. I see you and automatically think of Dopey Snow White’s Dwarf

          Libertas inaestimabilis res est
          Semper-Fi

          • KG

            quis est haec simia?

          • TheOriginalDaveH

            Take diu ambulandum off brevi columpna, KGB.

          • Vis Fac

            I agree with the sentiment however there is no water in Hell and therefore no pier for him to take a long walk on!
            Libertas inaestimabilis res est
            Semper-Fi

          • KG

            Quando podeces te regi eorum fecerunt?

          • Vis Fac

            The one (ape/monkey) you see in the mirror. Trying to assassinate my character says little for yours.
            Libertas inaestimabilis res est
            Semper-Fi

          • TheOriginalDaveH

            I’m certainly not sticking up for KGB, but it is a myth that our soldiers are dying to protect our Freedom. They are dying, unknowingly, to protect the pocketbooks of Politicians and Crony Capitalists.
            http://library.mises.org/books/John%20V%20Denson/A%20Century%20of%20War%20Lincoln,%20Wilson%20and%20Roosevelt.pdf

            Imagine the unmitigated gall, for instance, during times of draft, of forcing people (soldiers) to put their lives in harm’s way for other peoples’ “Freedom”. There is no greater loss of Freedom than being forced to risk or give up your life.
            It’s a joke, and anybody who does not get it needs to do some serious thinking.

          • Vis Fac

            You have said this same thing before. and I agree to a point. However keep in mind that our freedoms is being attacked from within and I am certain those of us who unknowingly fought those corporations will be back on the line to fight them when the time comes. Think of it as a training exercise of sort. Our government has been waging an undeclared war on us for decades and we have failed to notice. Until Now! What ever the case I and other like me will answer the call when needed.

            During both WW’s our freedoms were never in direct jeopardy however our economic status and threat to our lifestyles was. We were at low risk for being attacked but our allies who provided necessary and those “comfort” items most certainly were; so in a sense our freedom was in peril and our troops risked life and limb to preserve.

            Regarding forced soldiers (conscripts if you will) Our armed forces have been on a volunteer status since the early 70’s I had my own reasons to volunteer in the early 60’s so my loss of freedom was of my own doing.

            Libertas inaestimabilis res est
            Semper-Fi

          • TheOriginalDaveH

            The English entered WWI for one reason only — they were envious of Germany’s growing economic might. As always, the Crony Capitalists’ pocketbooks were more important than the lives of the soldiers.
            You seriously need to sit down and read these books, Force, so you will know what really goes on in the halls of Power. I guarantee your outlook will change:
            http://library.mises.org/books/Murray%20N%20Rothbard/Conceived%20in%20Liberty_Vol_2.pdf
            http://library.mises.org/books/John%20V%20Denson/A%20Century%20of%20War%20Lincoln,%20Wilson%20and%20Roosevelt.pdf

          • WTS/JAY

            MAKE THIS GO VIRAL! US SOLDIERS EXPOSING THE NWO MA
            https://www.youtube.com/watch?feature=player_embedded&v=o6KxvUXPbFY#at=85

          • http://cowboybyte.com/ Alondra

            Ex Military Bio-Environmental Engineer Kristen Meghan Blows Whistle On Air Force Chemtrails
            https://www.youtube.com/watch?v=mI10oFSUfQY&feature=endscreen

          • http://www.OlGreyGhost.Blogspot.com/ Ol’ Grey Ghost
  • Eagle525

    Ben Bernacki dosen’t have to know the price of gold. Here is why: First, you all know that our paper money is not backed up by gold or silver as it once was.
    That dollar bill you use is only worth the paper it is printed on and what the Federal Reserve says its worth. That said, here comes the kicker … the FEDERAL RESERVE (FR) is not even a FEDERAL AGENCY, it is a PRIVATE CORPORATION with STOCK HOLDERS. Created in 1913 the Federal Reserve, was instituted by banks and congress to basically “distribute money” amongst the populace. The FR is compose of BANKERS that buy dollars from the FED
    ( for cents on the dollar) and are “authorized ” by congress” to lend these dollars to the general public for a fee ( it is called interest). Now, If you want to be wealthy, open up a bank and serve as a distributor for the government printing services (dollars). If you think Obamacare is the worst sham legislation ever passed by Congress then add the Federal Reserve to the list.
    Here is the kicker … The USA has a large deficit … no big deal because the bill can be paid with cheap dollars … the down side is, as the value of the dollar declines no one will want them and the price for what you buy goes up (more dollars = less value) That is way the or credit rating of the USA is declining. When Ron Paul said : “to get back to the gold standard” he was, and is, vilified, now you know why .
    Ben Bernacki is the Chairman (mouth piece) for the domestic and international bankers that are members of the FR which garners HUGE profits every year . Oh by the way, after you open your bank you will never be a member of the FR because it is a privately held, “closed” corporation.

    • KG

      You are mistaken in your analysis of the Federal Reserve system. It is neither private or public. It is a governmental agency authorized by the 16th amendment to be the sole arbiter of money in America. It has this ‘monopoly’ power (I know, a bad term ;) due to the fact of Americas terrible history concerning money and banking in it’s history. What we call ‘recessions’ were nothing compared to the ‘panics’ of the 1800’s. Imagine 2008 happening every few years. That’s what prompted the bankers like JP Morgan, Stanley Chase, as well as the steel tycoon Carnegie to create the Fed so as to stop this constant cycle of failure Capitalism would go through every few years.

      • TIME

        Dear K bubba G,
        You have the audacity to tell Eagle that he is mistaken.
        Yet again you display that you’re the one who’s a really deluded, as well one who obviously has issues with comprehension.
        But I give you kudos for your twisting of “TRUTHS” to fit your square peg in to that round hole.

        • WTS/JAY

          KG must have had a change of heart; he went from preaching the wonders of communism to preaching the benefits of enslaving a nation through a banking-cartel. Will wonders ever cease?

      • TheOriginalDaveH

        KGB,
        Try again. The Federal Reserve was created by the Federal Reserve Act of 1913. The 16th Amendment created the Income Tax system.
        And prior to the Federal Reserve, there was only one recession (called Depressions back then) that was longer than 2 years. That was the so-called “Long Depression”.
        Murray Rothbard talks about the Long Depression:
        “Orthodox economic historians have long complained about the “great depression” that is supposed to have struck the United States in the panic of 1873 and lasted for an unprecedented six years, until 1879. Much of this stagnation is supposed to have been caused by a monetary contraction leading to the resumption of specie payments in 1879. Yet what sort of “depression” is it which saw an extraordinarily large expansion of industry, of railroads, of physical output, of net national product, or real per capita income? As Friedman and Schwartz admit, the decade from 1869 to 1879 saw a 3-percent-perannum increase in money national product, an outstanding real national product growth of 6.8 percent per year in this period, and a phenomenal rise of 4.5 percent per year in real product per capita. Even the alleged “monetary contraction” never took place, the money supply increasing by 2.7 percent per year in this period. From 1873 through 1878, before another spurt of monetary expansion, the total supply of bank money rose from $1.964 billion to $2.221 billion—a rise of 13.1 percent or 2.6 percent per year. In short, a modest but definite rise, and scarcely a contraction. It should be clear, then, that the “great depression” of the 1870s is merely a myth—a myth brought about by misinterpretation of the fact that prices in general fell sharply during the entire period. Indeed they fell from the end of the Civil War until 1879. Friedman and Schwartz estimated that prices in general fell from 1869 to 1879 by 3.8 percent per annum. Unfortunately, most historians and economists are conditioned to believe that steadily and sharply falling prices must result in depression: hence their amazement at the obvious prosperity and economic growth during this era. For they have overlooked the fact that in the natural course of events, when government and the banking system do not increase the money supply very rapidly, freemarket capitalism will result in an increase of production and economic growth so great as to swamp the increase of money supply. Prices will fall, and the consequences will be not depression or stagnation, but prosperity (since costs are falling, too) economic growth, and the spread of the increased living standard to all the consumers”.
        http://mises.org/Books/historyofmoney.pdf

        • KG

          I guess looking at the world through your rose colored glasses make things seem nicer that they really are, To help you with your lack of historical knowledge, here is a list of all the panics, recessions and depressions our country has had to suffer before somebody realized that Austrian “laze faire” economics doesn’t work:

          The Great Recession of 2007
          The Recession of 1980
          The Recession of 1973
          The Recession of 1958 – 1961
          The Recession of 1945
          The Great Depression of 1929 – 1942 including the Recession of 1937
          The Recession of 1918 – 1921
          The Recession of 1913
          The Panic of 1910
          The Panic of 1907
          The Panic of 1896
          The Panic of 1893
          The Long Depression of 1873 – 1885: Includes the Panic of 1873 and Recession of 1882
          The Panic of 1857
          The Panic of 1837 followed by the Depression of 1839
          The Recession of 1825 – 1826
          The Recessions of 1822 – 1823
          The Depression of 1815 – 1821
          The Depression of 1807
          The Recession of 1802
          The Panic of 1797

          http://myesoteric.hubpages.com/hub/A-Short-History-of-Significant-American-Recessions-and-Depressions-and-their-Causes

          • TheOriginalDaveH

            Here’s your chance to learn some of that history, KGB. But I’m sure you’re not interested, as you are here only to harass good people.
            The Depression of 1815-1821 was caused by a combination of war debt from the war of 1812, and from Government action allowing the banks to suspend redemption of their notes in specie. Hardly a recipe for Free Markets.
            Read the “War of 1812 and its Aftermath” starting at page 72:
            http://mises.org/Books/historyofmoney.pdf

  • red neck

    Speaking of money…. The obamas have just spent several million ( tax-payer ) dollars air-lifting their mutt dogs to Martha’s vineyard where the king and his precious ( better than everyone else ) family are spending millions of ( tax-payers dollars ) on a lavish vacation that he does not even deserve ( unless it is a permanent vacation )…

  • TML

    Money, Banking and the Federal Reserve
    https://www.youtube.com/watch?v=iYZM58dulPE

  • TheOriginalDaveH

    Gary Fodor says — “$34 since 1936 or 77 years to $1,350 today is an average annual compound return of 4.9%! Not much better than just the cash in a shoe box! The gold bugs just don’t know what they’re talking about!”.
    Way to show your ignorance, Gary. For one thing, most people would be tickled pink to earn 4.9% on their money. But Bob isn’t talking about the vagaries of investment. He’s talking about the certainty of your money becoming worthless eventually under the inflationary money creation scam of the Federal Reserve. Sure, an educated investor could do better, but putting your money in Gold would have involved no risk of loss over those 77 years.

  • Tim

    Who was presiding over this hearing? Which Committee failed to call Bernanke out?